A gram panchayat is the cornerstone of a local self-government organisation in India of the Panchayati raj system at the village or small town level, and has a Sarpanch as its elected head. The role of Panchayat organizations under British Colonial rule were strengthened, but in post-independence they have been given little right of co-determination. The failed attempts to deal with local matters at the national level brought back, in 1992, the reintroduction of panchayats for their previously used purpose as an organization for local self-governance.[1] As of 2002[dated info] there were about 265,000 gram panchayats in India. A panchayat is needed for every town and village.

A gram panchayat consists of between 7 and 17 members, elected from the wards of the village, and they are called a "panch". People of the village select a panch, with one-third of seats reserved for female candidates. To establish a gram panchyat in a village, the population of the village should be at least 300 people of voting age.

The main source of income of the gram panchayat is the property tax levied on buildings and open spaces within the village. Other sources of income include professional tax, taxes on pilgrimage, animal trade, grant received from the State Government in proportion of land revenue and the grants received from the District Councils of India (Zila Parishad).

The Gram Sevak, also known as Gram Vikas Officer or Village Development Officer, is the communicator in government and village panchayat and works for the Sarpanch. The district planning commission (DPC) takes the development schemes to be implemented for the next planning year from respective panchayat samitis submitted by gram sevaks of different villages under that panchayat samiti.

The Gram Sabha includes all the adult citizens of the village. It is empowered to elect the Gram Panchayat. The Sabha can influence decisions taken by the Panchayat and can modify weak decisions whenever they feel. The Panchayat can be established for a village having a population of 1,000–25,000. Several small villages having low population can be grouped into one Gram Sabha.

There are various committees, viz. Agriculture, Animal Husbandry, Public Works, Social Welfare, and Health and Sanitation, within each Gram Sabha.

According to Sec. 6 (3) of Andhra Pradesh Panchayat Raj Act, its gram sabha has to conduct a meeting whenever needed but there is a prescribed minimum number of meetings per year, two rather than a prescribed maximum. The national government notifies the local organization which two dates have been selected for the minimum gram sabha meetings. The gram sabha meeting should be held on every 14 April and 3 October. Conduct of gram sabha twice yearly is a minimum, not maximum. Gram sabha can be convened as and when necessary and as many times as possible, depending on the need.